Transaction Tax Buried in the Fine Print !

[zdo 20]

http://www.greencompany.com/EducationCenter/Greenblog011409.pdf

 

This can't be pretty. Traders in general need to wake up for this one!

 

I am rattling some cages in DC and making preliminary preparations to go offshore... suggest you do the same...

[letstrade 10]

How does a trader do business offshore?

 

If a trader residing in the US trades the Dax or ESTX50, would the transaction tax still apply?

[daedalus 10]

I was under the impression that as long as you were a U.S. citizen you paid U.S. taxes regardless of where your trading occurs, the securities traded, or your accounts held?

[rcossey73 10]

I was under the impression that as long as you were a U.S. citizen you paid U.S. taxes regardless of where your trading occurs, the securities traded, or your accounts held?

 

Your statement is true and honest people should pay their taxes. However, offshore accounts/companies are not required to report your trading to the IRS. So it is fairly easy to hide. There are several ways to do this, some legal and some not.

[zdo 20]

Let's not get distracted re offshore! Not everyone can go off shore.

Instead, if this passes, many many traders will go out of business!

:helloooo:

Want to pay a huge tax on the face value of each of your trades AND continue to pay taxes on your profits too?

This is hidden under the TARP folks

http://www.rules.house.gov/111/AmndmentsSubmitted/hr384/61_111_hr384_welch.pdf

 

:bad idea:

 

If you can make an eloquent case please contact your reps and the reps behind this

https://writerep.house.gov/writerep/welcome.shtml

[daedalus 10]

Oh hey i'm all for you about the transaction tax. I've already contacted my reps. I just don't know how I could get around it legally.

[Tasuki 10]

Oh I just don't know how I could get around it legally.

 

How about trading from a Roth IRA--would that get around the tax?

Tasuki

[bakrob99 11]

How about trading from a Roth IRA--would that get around the tax?

Tasuki

 

NO. It is proposed to be a transaction tax that will be charged on the trade as a fee.

[Tasuki 10]

Thanks, bakrob. Well, it would certainly put alot of people out of business. Where or how to we protest this? Someone who knows what they're doing re: Washington politics should put together a way to efficiently tell the appropriate lawmakers that this is a really bad idea.

[zdo 20]

It looks like this didn't make into the current TARP bill

All the amendments except 6 or 7 were dropped.

 

However the interests behind this are sticking / hiding it in every bill they can so we need to stay vigilante (sp)

They will strategically try to sneak it in as a rider on a big or "late night" bill

[Tasuki 10]

zdo,

Thanks for the update. Who are these "interests" that want to get this measure passed? And why? (I suppose if we knew Who, we'd probably have a good idea of Why).

Tasuki

[zdo 20]

zdo,

Thanks for the update. Who are these "interests" that want to get this measure passed? And why? (I suppose if we knew Who, we'd probably have a good idea of Why).

Tasuki

 

The economist Dean Baker is a strong advocate of a financial transactions tax

“For the typical person holding stock, who is planning to hold it for a long period of time, paying the quarter of one percent on a trade is just not that big a deal… It raises money in a way that comes primarily at the expense of speculation,” said Mr. Baker. “The fees would be a considerable expense for someone who is buying futures, or a stock, or any asset at 2 o’clock and then selling it at 3. The more you trade, the more you pay… "

 

The sponsors in congress are

http://www.govtrack.us/congress/bill.xpd?bill=h110-7125

 

These are well meaning folk who philosophically believe that those who created the mess should pay for the mess. And I guess no one has yet been able to convince these interests that the fiat money system itself created the very heart of this monetary situation and inevitable crisis...

and the real problem is not how various interests (banks, brokerages, investors, traders, etc) attempt to exploit / survive in the situation.

Govt again confusing effects for cause...

 

hth

[Tasuki 10]

 

These are well meaning folk who philosophically believe that those who created the mess should pay for the mess. And I guess no one has yet been able to convince these interests that the fiat money system itself created the very heart of this monetary situation and inevitable crisis...

and the real problem is not how various interests (banks, brokerages, investors, traders, etc) attempt to exploit / survive in the situation.

Govt again confusing effects for cause...

 

hth

 

Thanks, zdo. So, there are some people who think that retail traders like myself are the cause of the massive financial mismanagement by the major brokerages, the subprime loans, the devious repackaging of toxic debt? Wow, somebody needs to whack them up side of the head, wake'em up. Clearly, Congress needs to hear about this or we're going to lose our livelihoods.

[bakrob99 11]

Thanks, bakrob. Well, it would certainly put alot of people out of business. Where or how to we protest this? Someone who knows what they're doing re: Washington politics should put together a way to efficiently tell the appropriate lawmakers that this is a really bad idea.

 

I would think you could contact your Congressman and make it known that you object strongly to this type of market interference.

[rock 10]

just so stupid. Man I swear, the more you know the more depressing crap gets.